The Logistics Agreement serves as a foundational document for establishing and managing logistics services relationships in Indonesia. It is primarily used when a company needs to outsource its logistics operations to a specialized service provider or when formalizing existing logistics arrangements. The agreement comprehensively covers operational requirements, service standards, risk allocation, and compliance with Indonesian regulations, including Law No. 22/2009 on Road Traffic and Transportation, Law No. 17/2008 on Shipping, and various other relevant regulations. The document is essential for businesses requiring systematic management of their supply chain operations and ensures clear definition of responsibilities, performance metrics, and liability arrangements between parties.
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1. Parties: Identification of the logistics service provider and the customer, including their legal details and authorized representatives
2. Background: Context of the agreement, brief description of parties' businesses, and purpose of the logistics arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of logistics services to be provided, including transportation, warehousing, and handling
5. Service Levels: Performance metrics, KPIs, and minimum service standards
6. Operational Procedures: Day-to-day operational requirements, communication protocols, and standard procedures
7. Fees and Payment Terms: Pricing structure, payment terms, invoicing procedures, and cost adjustments
8. Term and Termination: Duration of agreement, renewal terms, and termination conditions
9. Liability and Insurance: Allocation of risks, liability limitations, and required insurance coverage
10. Confidentiality: Protection of confidential information and trade secrets
11. Force Majeure: Provisions for unforeseen circumstances and their handling
12. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms
13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Customs and International Shipping: Include when services involve international logistics or cross-border transportation
2. Dangerous Goods Handling: Include when transportation of hazardous materials is part of the services
3. Technology and Systems Integration: Include when specific IT systems or technological integration is required
4. Environmental Compliance: Include when services have significant environmental impact or require specific environmental certifications
5. Subcontracting: Include when the logistics provider may need to engage subcontractors
6. Asset Management: Include when the agreement involves management of customer's assets or equipment
7. Training and Staff Requirements: Include when specific staff qualifications or training programs are required
8. Business Continuity: Include when services are critical and require specific disaster recovery plans
1. Schedule 1 - Service Specifications: Detailed breakdown of all logistics services and specific requirements
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and calculation methods
3. Schedule 3 - Service Level Agreement: Detailed KPIs, measurement methods, and performance incentives/penalties
4. Schedule 4 - Operating Procedures: Detailed operational processes, workflows, and protocols
5. Schedule 5 - Insurance Requirements: Specific insurance types and coverage levels required
6. Schedule 6 - Contact Details: List of key personnel and emergency contacts
7. Appendix A - Warehouse Locations: Details of all warehouse facilities and operating hours
8. Appendix B - Equipment Specifications: Details of vehicles, handling equipment, and technology systems
9. Appendix C - Reporting Templates: Standard formats for operational and performance reporting
10. Appendix D - HSSE Requirements: Health, safety, security, and environmental standards and procedures
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